MOGAMBO GURU: Godzilla Rises Up Out Of The Ocean, Shooting Laser Beams...

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Richard Daughty, the angriest guy in economics -- World News Trust

I am having a hard time believing that the Federal Reserve is not expanding Total Fed Credit. In fact, it went down last week by $4 billion. Even Currency In Circulation is down. For a bunch of guys who are so hell-bent on flooding the world with money and destroying the USA with inflation, the Federal Reserve is suddenly doing a very poor job of it!

It's almost as if they woke up one morning and had the sudden revelation of "My God! The Mogambo was right! We ARE a bunch of freaking idiots, and our stupid New-Age, warmed-over, half-Keynesian-half-stupid monetary policy, combined with an asinine Fascist/ socialist/ communist political hodgepodge, means we are really freaking doomed!" And then they all jumped up and ran to work, and immediately started acting like competent grownups for a change, and immediately stopped that suicidal excessive creation of money and credit, which eventually drives up prices so high that people can't afford to loan me twenty lousy bucks, and THEN where in the hell will I be?

The real reason, I suspect, is much more prosaic, and that people have started stopping (as strange as that sounds) borrowing money, as suggested by a report on CNNMoney.com, namely that "Americans are among the world's most cash-strapped people, according to the latest semi-annual survey from AC Nielsen. Nearly a quarter (22 percent) of Americans have no money left once they've paid for their essential living expenses and spent their discretionary dollars. That puts the United States at the top of a list of 42 countries for saving futility."

I am going to gloss over the part where they seem to be saying how we ignorant wastrels out here have paid for "essential living expenses" and have also spent our "discretionary dollars" too! So, is the survey merely finding out who just got tired of spending money before it was all gone?

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